1998 4x4 of the Year Models: Mercedes-Benz ML320

The ML320 is the first-ever luxo-ute from prestigious Mercedes-Benz, and most onlookers assumed it was big cash. Actually, the Mercedes has a base price of $33,950, which (we hate to say it) is reasonable in today's high-end sport/utility market. However, add leather, a sunroof, Bose sound, metallic paint, and destination charges, and you'll pay $40,115-making this the highest-priced truck we tested.

But for your money you get, well...a Mercedes. Not only was the interior fit and finish ranked tops, but the Benz is by far the best-handling 4x4 we've ever tested. Both on tarmac and off, the brake feel and steering control were the best, and even though we disapproved of the shifter design, the computer-controlled five-speed is one of the finest auto trannies we've experienced. With ultimate tunes, superior cruise control, and interior silence like few we've encountered, the MB made up for many lost points in on-dirt testing.

The biggest drawbacks to the ML320's off-road abilities are its low ground clearance and extremely limited wheel travel. Another drawback is Mercedes' solution to the limited travel: the four-wheel electronic traction system (4ETS). This system utilizes open differentials in both axles and in the transfer case, so power always goes to the tires with the least traction. Mercedes overcomes this by utilizing the ABS to modulate the brakes and slow the spinning wheel, thereby sending power to the tires with traction.

This works amazingly well in the mild conditions most likely encountered by typical ML320 drivers. We thought it was really neat-until we hit slightly more difficult terrain. If you get a tire off the ground on a slow-speed trail, too much wheel speed is required to activate the 4ETS-once it does engage, you better get on the brake fast, otherwise you'll launch too quickly off the obstacle, resulting in vehicle body massage. Speaking of brakes, you also have to remember that touching the brake pedal deactivates the 4ETS. So imagine this scenario: You're traveling down a rutted hill in First gear, low range, using compression braking. If one wheel comes off the ground, all the compression braking power goes to the wheel that's off the ground. Bummer. And in sand and loose dirt, the 4ETS get confused, leaving the Mercedes stranded where conventional four-wheel-drive systems are able to tread easily.

A compact spare (with no room to store a dead fullsize tire) and a sealed trans dipstick further assured us that this is not an enthusiast-targeted vehicle. However, those concerns were distanced once on the highway, where the ML320 will surely thrive as one of the most prestigious luxury sport/utes.